Bilateral Relations Essay

Saudi-U. S relations always draws attention owing its diversified religious and continental affairs. However, the oil export history and the currency pegging issues are dynamic in understanding these bilateral relations between these countries. The Saudi alliances and the network issues of GCC countries adds much flavor to peep into the relation between Saudi-U. S. In this context the current paper tries to observe the Saudi- U. S bilateral relations on a historical and incidence basis.

The research paper intends to observe the stock market issues, currency binding relations between the Dollar and Riyal currencies along with the influence of newly proposed GCC currency. The Historical base of U. S -SAUDI Relations Till 1940, the Kingdom of Saudi was untouched by the U. S government, though the country Saudi was recognized as Kingdom in 1931. This began when Bert Fish made a visit to Jidda to meet the King Abd al Aziz, but then the differences reflected through the British dominance became obstacle for the Islamic country to make any further appreciable movement in this regard.

During 1931 the King Abd al-Aziz invited Charles R. Crane, who is a Chicago millionaire and a former ambassador, and associate of American presidents to help in facilitating the exploration for earthly assets of the Kingdom, including water resources. beneath the soil of the impoverished kingdom, starting with water. Karl S. Twitchell, a mining Engineer suggested by Charles R. Crane helped in attracting a major American oil company to the kingdom, which then facilitated the talks between Standard Oil of California (Social) and Saudi minister of finance in Jidda during 1933.

As a result, Aramco—the Arabian American Oil Company was formed to supply oil in commercial quantities from 1938. Oil exporting was started for the year 1939. Such narrow relationship became wide through the exchange of technical experts, traders, students and tourists. However during this time America has to work on excluding the other foreign national powers such as British upon the oil resources of Kingdom. However, the priority assigned to Saudi-American relations declined substantially with the January 1993 inauguration of President Bill Clinton.

In Middle Eastern affairs, the new president was largely preoccupied with Arab-Israeli peacemaking. The bilateral relations between Saudi and U. S government were highly disturbed in regard to the Arab-Israeli conflicts in 1948, 1967, and 1973. The dual containment policy by the U. S President Bill Clinton’s is also observed by U. S. military personnel in side the Kingdom. The two terrorist bombings that took place in Riyadh in 1995 and Dhahran in 1996 had killed 24 of U.

S military persons and injured several others, that still destabilized the trust between the countries. However during the Gulf War in 1990-1991, Saudi invited the US intervention to oppose the Saddam’s effect on the country. During the Gulf war, Saddam’s quarrelsome attitudes with other Arab countries made them to take the support of the big nations. The King Fahd of Saudi Arabia recognized in the dire situation of the country during this period immediately requested aid from President Bush of United States.

Without failing U. S has proved it commitment to the Saudi relation by implementing air forces and Navy ships to Saudi territory. Under the Operation called “Desert Shield” U. S deployed 40,000 troops to Saudi Arabia on August 8 1990. The later strengthening of relations were happened through the Saudi’s signing of Trade Investment Framework agreement with U. S in July 2003 and the joining of Saudi in WTO in December 2005. Political Relations between Saudi-U. S. Relations, 1931-1991 The diplomatic relations of Saudi-U. S.

political were formed by the influence of technological, political, military, and commercial interests and understandings developed during and following the Second World War. King Abd Al Aziz was recognized as ruler of Hejaz and Nejd in 1931. But only after 1942, through a resident diplomatic representative of U. S in Saudi, the relations between United States began to propagate its roots. The U. S. -Saudi relations from early 1930s through 1945, were confined to the oil exploration indulgence with the California Arabian Standard Oil Company [CASOC, which further developed as today’s Aramco.

When CASOC’s discovered another oil reserve in 1938 in eastern Saudi, there aroused a need for establishing bilateral relations between Saudi and U. S to manage and to defend the oil production with the indulgence of private and public U. S. efforts. During this period itself, Saudi with the help of U. S has come out from the external economical and political influence of United Kingdom. The meeting between President Franklin Delano Roosevelt and King Abd al Aziz on February 14, 1945 is considered as the noteworthy start up for the U. S. Saudi relations by many observers.

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